Manufacturers to FG: Make Local Content Mandatory for Government Projects

Governmental organizations should be required to use indigenous products, according to the Manufacturers Association of Nigeria (MAN).

Speaking Thursday at the 40th annual general meeting (AGM) of the association’s Ogun state section in Abeokuta, Francis Meshioye, president of MAN, suggested sanctions for government contractors that disregard local content.

By requiring the purchase of locally produced goods and services, Meshioye stated that the “Nigeria First” policy must be rigorously implemented at all levels and branches of government.

According to the MAN executive, Nigerian businesses should provide all uniformed agencies with their cars, uniforms, footwear, and other supplies.

“There must be penalties for non-compliance, and government contractors must be required to prioritize local content,” he stated.

“To implement these reforms, we are actively collaborating with the state minister of industry through the Industrial Revolution Working Group.

“The manufacturing sector needs to regain its confidence.

We also implore the administration of Ogun State to domesticate the policy and guarantee that, when it comes to contracting and procurement, all state ministries, departments, and agencies give preference to items created in Nigeria.

The $2.4 billion in foreign exchange (FX) forwards due to manufacturers must be cleared immediately, Meshioye added, complaining that businesses are “bleeding” from double interest payments.

“Tough loan repayment due to high interest rates”

The chairman of MAN in Ogun State, George Onafowokan, pleaded with the federal government to enact reforms that will encourage the expansion and advancement of regional businesses in the nation.

The manufacturing sector’s decreasing share of Nigeria’s GDP, which Onafowokan stated dropped from 16.04 percent in the fourth quarter of 2023 to 12.68 percent by mid-2024, is a cause for concern.

Inflation, foreign exchange scarcity, high lending rates, and onerous regulations were the reasons he cited for the drop.

According to the chairman, the industrial and service sectors in Nigeria were the primary drivers of the country’s 3.4 percent GDP growth in 2024.

Members continue to function and make significant contributions to the economy in spite of the challenging circumstances, according to Onafowokan.

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According to the chairman, “members have remained steadfast, keeping factories running, paying workers, and contributing to Ogun State’s revenue base and Nigeria’s GDP.”

“Ogun manufacturers are still in business and making investments in the economy in spite of these obstacles.”

The issues facing Ogun’s manufacturers, he said, include arbitrary fines from regulatory authorities, illegitimate taxes imposed by local governments, and intimidation by government agencies and security personnel.

In addition, the state MAN chairman bemoaned the high cost of borrowing, pointing to the May 2025 monetary policy rate (MPR) of 27.5 percent.

Such rates, he claimed, reduce corporate margins and make loan repayment onerous.

Onafowokan encouraged manufacturers to look into other funding options like Agusto & Co., LECON Finance Company, and the Bank of Industry (BoI) in order to obtain reasonably priced capital for operations and growth.

During his speech, Ogun Governor Dapo Abiodun praised manufacturers for their tenacity and contributions to economic expansion.

In the capacity of Commissioner for Industry, Trade, and Investment Adebola Sofela, the governor reiterated the state government’s resolve to improve the business environment through tax simplification and infrastructure spending.